UW Board Has Used Walker-Ames Fund Wisely

RECENT articles and an editorial by The Seattle Times wrongly asserted that the University of Washington Board of Regents misused funds provided by the Walker-Ames Fund to supplement the salary of University of Washington president William P. Gerberding.

In fact, the use of the fund to support Dr. Gerberding's leadership is in full keeping with the spirit and letter of the Walker-Ames will, which in 1931 provided for a generous permanent endowment to the university.

In further commentary, The Times sums up its erroneous conclusion by declaring that "the bequest makes it clear that the donors intended their endowment to be used for faculty support."

However, the actual language of the will states: "I further direct and declare, in reference to such `The Walker-Ames Fund of the University of Washington,' that it is my intention that the Board of Regents of the University of Washington shall, at all times, have a large and wide discretion in the use of the income of such fund for such purposes as in their opinion the same can be so used as to be most beneficial to said University of Washington; but as an expression of my wishes and desires, not, however, to be held as controlling upon said Board of Regents or as limiting their full discretionary powers in reference to the income of such fund, I suggest: . . ."

The suggestions pertain to professorships, support facilities and lectureships. But even within the language describing the suggestions, the donors further stated: ". . . I expressly leave to the discretion of the Board of Regents the full authority to determine, from time to time, just how much, if any, of such income shall be devoted to this use; how many, if any, extraordinary professorships shall, from time to time, be established . . ."

The Walker-Ames bequest is extraordinary not only for its generosity, but also for its understanding that over the years needs would change. To this day, it is the only large endowment that is not directed or restricted.

Over the past 61 years the Walker-Ames endowment has been used for many different purposes, including those suggested by the donors, as well as others identified by the regents as benefiting the university. For at least 30 years, Walker-Ames funds have been used to supplement the compensation of the university president.

As a large and complex institution with 34,000 students, 15 schools and colleges, 17,000 employees, a major hospital, a broad expanding range of research activities, and an annual budget of over $1.2 billion, the University of Washington must have strong leadership if it is to maintain excellence.

Dr. Gerberding is one of the best university presidents in the country. Under his direction, the university has emerged from the difficult days of underfunding in the late '70s and early '80s to become one of our nation's premier research universities.

As one measure of success - one of many - consider that last year, faculty and researchers competed for and won more than $400 million in grants and contracts, more than any other public university and third among all in the nation. This alone speaks volumes of the prominence, quality and excellence of the people and the programs that compose the University of Washington.

Under Dr. Gerberding's leadership, private giving to support expanding needs and opportunities has grown from less than $8 million per year to almost $60 million. With the recently completed Campaign for Washington, which raised $284 million - $34 million over the goal - our university now has 20 endowed chairs and 58 endowed professorships. Private support enhances the quality of the institution in these and many other ways.

The appropriate level of compensation for the president of an institution such as the University of Washington must be judged in the context of the competitive environment for the very few who truly qualify. At a time when turnover is accelerating (currently there are openings at Yale, Columbia, Duke, Chicago, Texas and Michigan State, to name a few) salaries have risen dramatically.

The state-funded portion of our president's salary has been increased at very modest levels so as not to exceed the rate for state-funded increases in faculty salaries. The reality, however, is that a fair and competitive salary level is much higher. We have been fortunate over the years to have discretionary private endowment funds to fill the gap.

The Walker-Ames donors intended that their gift be used to benefit the university. To this day some of their specific suggestions are funded from their endowment. As the university has changed over the past 61 years and as needs and resources have changed with it, a growing proportion of the income from their extraordinary bequest has been used to assure strong leadership and to support private giving from others. Surely this has been most beneficial to the University of Washington.

We applaud Maude Walker Ames and Edwin Ames for their foresight in giving the Board of Regents discretion in the use of their gift to meet the challenges of changing times.

H. Jon Runstad is president of the Board of Regents, University of Washington.